Jasmine Birtles
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The Best Commodity ETFs to Buy in 2025
Ruby Layram
28th Jul 2025
Commodities might not sound as glamorous as tech stocks or crypto coins, but don’t be fooled , they’re one of the most powerful tools in your investing toolkit. And if you’re looking for a way to beat inflation, diversify your portfolio, or just tap into the raw power of global demand, commodity ETFs are a smart place to start.
In this guide, we will share the best commodity ETFs to consider in 2025 and how to add them to your portfolio!
What Exactly Is a Commodity ETF?
A commodity ETF is a basket of investments that gives you exposure to physical commodities, things like gold, oil, wheat, copper, and even lithium.
Rather than buying a bar of gold or a barrel of crude, you can invest in a commodity ETF and let the fund do the heavy lifting. Some track commodity prices directly, while others invest in commodity-producing companies.
And the best part? You can buy and sell them on the stock market like any other share.
Why Invest in Commodities in 2025?
Let’s be honest, 2025 isn’t exactly a calm year.
We’re dealing with:
- Sticky inflation that refuses to budge
- Central banks doing the interest rate cha-cha
- Ongoing geopolitical instability
- Demand spikes in minerals thanks to AI, EVs, and clean energy tech
All of this makes commodities pretty attractive. Here’s why:
Inflation Hedge: Commodities tend to rise when inflation does.
Diversification: They don’t always move with the stock market, which can help smooth out your returns.
Growth Opportunity: The shift to green energy and tech is fuelling demand for metals and materials.
5 of the Best Commodity ETFs to Buy in 2025
Here are five top ETFs for UK investors looking to dip into commodities this year. Always do your own research, but these picks offer a solid starting point.
Also read: The best Gold ETFs to Buy in 2025
1. iShares Physical Gold ETC (SGLN)
What it does: Tracks the price of physical gold.
Why it’s good: Simple, low-cost way to gain exposure to gold without needing to store the stuff under your bed.
With central banks still loading up on gold and economic uncertainty lingering, many investors see gold as a safe haven right now.
2. WisdomTree Brent Crude Oil ETC (BRNT)
What it does: Tracks the price of Brent Crude oil using futures contracts.
Why it’s good: Energy prices remain volatile, and oil still plays a major role in the global economy, especially with OPEC+ in the mix.
While green energy grows, demand for oil hasn’t disappeared. Some see this as a short-to-medium-term play.
3. Global X Lithium & Battery Tech ETF (LIT)
What it does: Invests in companies involved in lithium mining and battery production.
Why it’s good: As EV adoption surges and AI data centres boom, demand for energy storage tech is flying.
Lithium is a critical resource, and prices are recovering after a 2023-2024 dip.
4. iPath Series B Bloomberg Agriculture Subindex Total Return ETN (JJG)
What it does: Tracks a broad basket of agricultural commodities like soybeans, corn, and wheat.
Why it’s good: Food inflation, climate change, and global supply issues are driving demand and prices.
Agri commodities tend to zig when other assets zag, great for portfolio balance.
5. Invesco Bloomberg Commodity UCITS ETF (CMOD)
What it does: Broad exposure to energy, agriculture, and metals all in one ETF.
Why it’s good: Perfect if you want to diversify across multiple commodities without having to pick favourites.
This one gives you a bit of everything — great for investors who want one ETF to rule them all.
Top Tips Before You Invest in Commodity ETFs
Before you jump in, here’s what to keep in mind:
- Understand the difference between physically-backed ETFs and those that use futures or invest in related companies.
- Volatility is normal. Commodity prices can swing wildly based on weather, politics, supply chains, and investor sentiment.
- Use them to diversify, not dominate your portfolio. Commodities are a tool, not the whole toolbox.
Final Thoughts
If you’re looking to beat inflation, protect your money, or tap into global demand, commodities deserve a spot in your portfolio, even if it’s just a small one.
With the right ETFs, you can get exposure to powerful global trends without having to guess the next gold rush.
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
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